Governance: Governance Actions and Commitments

To achieve sustainable development – balanced economic growth and the conservation of natural resources – organisations need to implement regulations and establish governance structures that will monitor their implementation.

Sallaum Lines established a conscious governance structure anchored in our Board of Directors and the Executive Leadership Team. It governs sustainability implementation and integrates it into core business processes related to strategy, performance, planning, and risk management.

All committees under the Board of Directors support sustainability regulations and compliance. The sustainability team – the Global Sustainability Committee – implements sustainable development-related work. Leaders in charge of the company and the heads of each department make the sustainability team, whose responsibilities include:

• Risk identification related to sustainable development
• Communication with stakeholders and discerning important topics
• Data collection and reporting

The sustainability committee reports to the Board of Directors at least twice a year, which is an effective communication and decision-making mechanism. Besides reviewing the annual sustainability report, the Board of Directors conducts at least one audit annually to enhance internal monitoring and increase the efficiency of relevant measures and action plans.

To accelerate our efforts, particularly around decarbonising logistics, in 2022, we expanded the Global Sustainability Committee. It includes an executive member responsible for preparing work plans and strategies and ensuring alignment across the company. This executive is supported by a broader decarbonisation advisory group, which defines a set of workstreams covering: commercialisation, energy efficiency, fleet and network, retrofitting, new fuels, sourcing, and framework conditions.

Compliance as an Active Commitment

As a highly ethical and law-abiding organisation, Sallaum Lines puts regulations and compliance in its business foundation. Our commitment to compliance starts with internal governance, including anti-corruption and probity requirements for all employees. Here are the upgrades from 2022:

Improved Management System
To establish the regulation of our anti-corruption work, we have developed two new directives:

• Working Rules of the Coordination Group for the Construction of an Honest Party and Anti-corruption Work
• Assessment Measures for Party Conduct and Anti-corruption Work Performance

New Reporting Channels
We have enhanced our anti-corruption reporting to encourage our employees to disclose possible corruption. We have set up independent departments that receive messages, calls and visits and have dedicated phone numbers and email addresses. We are taking the highest protection measures in safeguarding whistle-blowers’ data
while protecting them from discrimination.

Our commitment to the anti-corruption policy includes close attention and investigation of any report clue, personal accountability, and closing supervision loopholes. Furthermore, in case of identifying illegal behaviours, bad actors shall be appointed to relevant departments, the company’s management, and legal entities and institutions in more severe cases.

Regular Supervision and Audits
To strengthen our anti-corruption practice, we engage internal and
external independent entities. They conduct comprehensive annual
audits and risk identification assessments to detect frauds, defects and deficiencies. The problems identified during those audits adhere to
company policies, after which the inspected department needs to
implement changes.
Relevant company departments assist the independent investigation
and ensure the risk response plans are integrated. In addition, audits
and risk assessments are a part of the regular reports submitted to the
management and the Board of Directors.

Anti-corruption Activities and Education
To encourage ethical practice and self-discipline, we initiate regular
anti-corruption promotional activities and training for all employees. For example, in 2022, our leadership organised a competition across all departments where employees answered questions about anti-corruption and probity through online platforms and written forms. The goal was to enhance employees’ anti-fraud awareness. We also organised our employees’ visits to the anti-corruption education base and exhibitions to use the available resources fully.